Company expects strong 2017 summer season with popular new Brownie
Batter flavor

May 24, 2017 04:30 PM Eastern Daylight Time

PADUCAH, Ky.--(BUSINESS WIRE)--Dippin’ Dots, LLC, the leading maker of flash-frozen beaded ice cream
and frozen treats, posted double-digit growth in 2016, led by the
company’s focus on account development and retention, strong franchising
sales and expanded distribution to entertainment venues and third-party
retail outlets.

Total sales of the privately held company’s core ice cream products
increased 13 percent in 2016. Dippin’ Dots expects continued strong
demand for the current fiscal year, with sales increasing through Q1.

“Our focus on key market segments, combined with dedicated execution of
our strategic plan, powered the continued robust growth in 2016,”
commented Scott Fischer, Dippin’ Dots CEO. “Since being acquired by
Fischer Enterprises LLC in late 2012, Dippin’ Dots has recorded four
straight years of growth in sales of core ice cream products, with
growth ranging from 13 to 25 percent each year.”

Developing close partnerships with key corporate customers is one reason
for the company’s continued robust growth. In 2016, Dippin’ Dots
expanded its partnership with Chuck E. Cheese, the family-friendly
destination for food, fun and play. Dippin’ Dots created a custom flavor
available exclusively at Chuck E. Cheese locations, and its frozen
treats are now available at 540 Chuck E. Cheese restaurants nationwide.

Dippin’ Dots prides itself on customer service and long-term
relationship building with clients, which shows in its account retention
rate of more than 98 percent. In 2016, Premier Parks’ theme and water
parks renewed its Dippin’ Dots contract for an additional three years.
Dippin’ Dots has become a staple theme park treat across the nation,
with sales in amusement parks increasing 48 percent in the last five
years.

“We develop true partnerships with our customers and provide them
unparalleled account service,” said Jim Faust, Dippin’ Dots key account
manager. “Customers stick with us year after year because we get to know
them and their business in depth so that we can jointly work to create
customized programs tailored to their needs.”

In addition to retaining and expanding sales at current accounts,
Dippin’ Dots has added 3,092 new points of presence since 2015, which
helped increase non-franchised sales by more than 32 percent over the
same period. One of those accounts was the iconic Philadelphia Zoo,
which closed a three-year agreement with Dippin’ Dots in 2016. Now
available at more than 80 zoos across the country, zoo sales increased
21 percent from 2013 to 2014, 25 percent from 2014 to 2015 and an
additional 20 percent from 2015 to 2016.

“The Dippin’ Dots brand is based on fun, so we are a natural fit for
family entertainment destinations,” said Adam Gross, Dippin’ Dots senior
sales director. “Families know and expect to find our kiosks at zoos,
amusement parks and stadiums throughout the country, and no outing is
complete without a cup of Dippin’ Dots to cap it off.”

Sales gains are also being driven by growth in co-branded stores.
Dippin’ Dots and its sister brand Doc Popcorn, the world's largest
franchisor of fresh-popped popcorn, have 17 co-branded locations
currently operating in the U.S. As a result of the “sweet and savory”
success of these locations, Dippin’ Dots and Doc Popcorn expect to
double the number of locations and open 10 to 15 new co-branded
locations in 2017 including: Ontario, Calif.; Indianapolis, Ind.;
McAllen, Texas; Chicago Ridge, Ill.; Cary, N.C.; and Winston-Salem, N.C.

Dippin’ Dots ice cream treats are available in more retail locations
then ever as the company expands into non-traditional outlets like
convenience stores. Dippin’ Dots grew its convenience store customers by
30 percent over the last two years. Annual revenues for this segment
have increased by double digits each of the past five years, and retail
distribution is currently the fastest growing part of the Dippin’ Dots
business.

Franchise sales remain a powerful engine for Dippin’ Dots sales. The
company’s total number of franchises has grown from 107 to 121 since
2014. Year-over-year franchising revenue grew by 14.75 percent in 2016.

“Our franchisees remain an important part of Dippin’ Dots’ success,”
stated Steve Rothenstein, senior director of franchising at Dippin’ Dots
Franchising LLC. “We partner with them to make sure they have the
knowledge and tools they need for their business to succeed.”

To commemorate National Ice Cream Day in July, Dippin’ Dots teamed up
with American recording artist and record producer Dawin Polanco to
create “Dessert,”
a Dippin’ Dots remix of his
original hit song that scored over 126 million views on YouTube and
hit several top 100 singles charts around the globe.

Product innovation continued with the development of a new flavor,
Brownie Batter, which was launched for the summer 2017 season. The
Dippin’ Dots product team examined taste trends and consumer feedback as
part of the development of the decadent new flavor.

“Brownie Batter has been exceptionally well received by customers across
multiple channels as well as our franchisees,” said Michael Barrette,
vice president of marketing and sales. “We anticipate strong demand for
this exciting new flavor this summer season and expect it will become a
customer favorite for years to come.”

About Dippin’ Dots

Dippin’ Dots has produced and distributed its flash-frozen tiny beads of
ice cream, yogurt, sherbet and flavored ice products since 1988. Made at
the company’s production facility in Paducah, Kentucky, Dippin’ Dots
distributes its unique frozen products in all 50 states and 11 countries
through its franchised and direct distribution network. For more
information, including franchise opportunities, please visit www.dippindots.com.